History
Until 1918, the region known as Palestine was an integral part of the Ottoman Empire and therefore used its currency, the Ottoman lira. Following the institution of the British Mandate for Palestine, the Egyptian pound also circulated alongside the Ottoman lira until 1927. This created an unsatisfactory situation which required a currency reform. The Palestine pound was introduced, equal in value to the Pound sterling. The Palestine pound was also declared a legal tender in the Transjordan Emirate, which was technically a part of the British Mandate, though having an autonomous local administration. The body which governed the issue of the currency was the Palestine Currency Board, which was subject to the British Colonial Office. The Currency Board was dissolved in May 1948, as the British Mandate ended. The area in which the Palestine pound circulated was divided into several political entities: the State of Israel, the Hashemite Kingdom of Transjordan, the Jordanian-occupied West Bank and the Egyptian-occupied Gaza Strip.
In Israel, there was a transitional period of 4 years between the end of the British Mandate and the adoption of a fully independent currency system. Between 1948 and 1952 the Palestine pound continued to be a legal tender. In August 1948, new banknotes were issued by the Anglo Palestine Company, owned by the Jewish Agency and based in London.
In Jordan, the Palestine pound was replaced by the Jordanian dinar in 1949. In 1949, Jordan annexed the West Bank, but the Palestine pound continued to circulate until 1950. The Jordanian dinar is still legal tender in the West Bank along with Israeli shekel.
In the Gaza Strip, the Palestine pound circulated until April 1951, when it was replaced by the Egyptian pound, three years after the Egyptian army took control of the territory. Today, Gaza Strip inhabitants mostly use the Israel shekel.
In the Oslo Accords the Palestinian Authority was debarred from issuing its own currency and constrained to remain dependent on the Israeli or Jordanian currencies. However, the Palestinians were able to issue postage stamps and these were valued in terms of the Palestine pound, which Palestinian economists and officials declared to be a still-existent (though at present "dormant") currency, to be revived after Palestinian independence. In practice, prices in the Palestinian territories are quoted in Israel currency.
There was a report that the Palestinian authorities were considering issuing new banknotes and coins in 2011. This, however, never came to fruition.
Read more about this topic: Palestine Pound
Famous quotes containing the word history:
““And now this is the way in which the history of your former life has reached my ears!” As he said this he held out in his hand the fatal letter.”
—Anthony Trollope (1815–1882)
“Let us not underrate the value of a fact; it will one day flower in a truth. It is astonishing how few facts of importance are added in a century to the natural history of any animal. The natural history of man himself is still being gradually written.”
—Henry David Thoreau (1817–1862)
“I think that Richard Nixon will go down in history as a true folk hero, who struck a vital blow to the whole diseased concept of the revered image and gave the American virtue of irreverence and skepticism back to the people.”
—William Burroughs (b. 1914)